WESTERN UNION CO (WU)
US9598021098 - Common Stock
We assign a fundamental rating of 5 out of 10 to WU. WU was compared to 99 industry peers in the Financial Services industry. WU scores excellent on profitability, but there are concerns on its financial health. WU has a bad growth rate and is valued cheaply. WU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WU had positive earnings in the past year.
In the past year WU had a positive cash flow from operations.
Each year in the past 5 years WU has been profitable.
Each year in the past 5 years WU had a positive operating cash flow.
1.2 Ratios
WU's Return On Assets of 8.80% is amongst the best of the industry. WU outperforms 85.86% of its industry peers.
With an excellent Return On Equity value of 103.49%, WU belongs to the best of the industry, outperforming 98.99% of the companies in the same industry.
WU has a better Return On Invested Capital (10.05%) than 82.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WU is above the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 103.49% | ||
| ROIC | 10.05% |
ROA(3y)9.16%
ROA(5y)9.48%
ROE(3y)182.63%
ROE(5y)N/A
ROIC(3y)11.67%
ROIC(5y)11.26%
1.3 Margins
WU has a better Profit Margin (16.07%) than 65.66% of its industry peers.
In the last couple of years the Profit Margin of WU has remained more or less at the same level.
WU has a better Operating Margin (17.80%) than 61.62% of its industry peers.
In the last couple of years the Operating Margin of WU has grown nicely.
With a Gross Margin value of 38.28%, WU perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
WU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 16.07% | ||
| GM | 38.28% |
OM growth 3Y-3.33%
OM growth 5Y1.59%
PM growth 3Y-2.27%
PM growth 5Y-1.17%
GM growth 3Y-2.42%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
WU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WU has less shares outstanding
WU has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that WU is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, WU is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
The Debt to FCF ratio of WU is 6.07, which is on the high side as it means it would take WU, 6.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WU (6.07) is comparable to the rest of the industry.
WU has a Debt/Equity ratio of 3.20. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.20, WU is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | 6.07 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.33
WACC7.53%
2.3 Liquidity
WU has a Current Ratio of 0.67. This is a bad value and indicates that WU is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.67, WU is doing worse than 62.63% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that WU may have some problems paying its short term obligations.
WU's Quick ratio of 0.67 is on the low side compared to the rest of the industry. WU is outperformed by 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
WU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.78%.
Measured over the past years, WU shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.95% on average per year.
The Revenue has decreased by -4.39% in the past year.
WU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
EPS 1Y (TTM)1.78%
EPS 3Y-2.37%
EPS 5Y-1.95%
EPS Q2Q%6.98%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y-3.41%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.63%
3.2 Future
Based on estimates for the next years, WU will show a small growth in Earnings Per Share. The EPS will grow by 2.70% on average per year.
The Revenue is expected to grow by 0.68% on average over the next years.
EPS Next Y4.56%
EPS Next 2Y3.47%
EPS Next 3Y4.31%
EPS Next 5Y2.7%
Revenue Next Year-3.35%
Revenue Next 2Y-1.39%
Revenue Next 3Y-0.38%
Revenue Next 5Y0.68%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WU is valuated cheaply with a Price/Earnings ratio of 6.23.
Based on the Price/Earnings ratio, WU is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of WU to the average of the S&P500 Index (27.20), we can say WU is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.75, the valuation of WU can be described as very cheap.
89.90% of the companies in the same industry are more expensive than WU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.73. WU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.23 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WU is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
81.82% of the companies in the same industry are more expensive than WU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.49 | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
WU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WU may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y3.47%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 8.79%, which is a nice return.
WU's Dividend Yield is rather good when compared to the industry average which is at 3.79. WU pays more dividend than 96.97% of the companies in the same industry.
WU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.79% |
5.2 History
The dividend of WU has a limited annual growth rate of 4.89%.
WU has been paying a dividend for at least 10 years, so it has a reliable track record.
WU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.89%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
WU pays out 48.10% of its income as dividend. This is a bit on the high side, but may be sustainable.
WU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.1%
EPS Next 2Y3.47%
EPS Next 3Y4.31%
WESTERN UNION CO
NYSE:WU (12/20/2024, 8:04:00 PM)
Premarket: 10.55 -0.16 (-1.49%)10.71
+0.01 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change-0.41%
Ins Owners0.22%
Ins Owner Change0.03%
Market Cap3.62B
Analysts48.89
Price Target12.91 (20.54%)
Short Float %5.83%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.79% |
Dividend Growth(5Y)4.89%
DP48.1%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.2%
Min EPS beat(2)-4.43%
Max EPS beat(2)2.03%
EPS beat(4)2
Avg EPS beat(4)0.53%
Min EPS beat(4)-4.43%
Max EPS beat(4)7.01%
EPS beat(8)5
Avg EPS beat(8)6.26%
EPS beat(12)8
Avg EPS beat(12)8.48%
EPS beat(16)10
Avg EPS beat(16)6.64%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.34%
Max Revenue beat(2)-2.26%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.88%
Revenue beat(8)4
Avg Revenue beat(8)0.83%
Revenue beat(12)4
Avg Revenue beat(12)-0.46%
Revenue beat(16)4
Avg Revenue beat(16)-0.88%
PT rev (1m)-1.5%
PT rev (3m)-2.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.23 | ||
| Fwd PE | 5.75 | ||
| P/S | 0.86 | ||
| P/FCF | 8.49 | ||
| P/OCF | 6.74 | ||
| P/B | 5.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.02 |
EPS(TTM)1.72
EY16.06%
EPS(NY)1.86
Fwd EY17.39%
FCF(TTM)1.26
FCFY11.78%
OCF(TTM)1.59
OCFY14.84%
SpS12.44
BVpS1.93
TBVpS-5.15
PEG (NY)1.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.8% | ||
| ROE | 103.49% | ||
| ROCE | 12.38% | ||
| ROIC | 10.05% | ||
| ROICexc | 12.09% | ||
| ROICexgc | N/A | ||
| OM | 17.8% | ||
| PM (TTM) | 16.07% | ||
| GM | 38.28% | ||
| FCFM | 10.14% |
ROA(3y)9.16%
ROA(5y)9.48%
ROE(3y)182.63%
ROE(5y)N/A
ROIC(3y)11.67%
ROIC(5y)11.26%
ROICexc(3y)14.21%
ROICexc(5y)13.82%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.94%
ROCE(5y)13.36%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-2.91%
ROICexc growth 5Y-0.9%
OM growth 3Y-3.33%
OM growth 5Y1.59%
PM growth 3Y-2.27%
PM growth 5Y-1.17%
GM growth 3Y-2.42%
GM growth 5Y-0.82%
F-Score4
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.2 | ||
| Debt/FCF | 6.07 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 61.17% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 6.67 | ||
| Cash Conversion | 57.77% | ||
| Profit Quality | 63.09% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.05 |
F-Score4
WACC7.53%
ROIC/WACC1.33
Cap/Depr(3y)62.09%
Cap/Depr(5y)51.32%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.21%
Profit Quality(3y)90.88%
Profit Quality(5y)91.5%
High Growth Momentum
Growth
EPS 1Y (TTM)1.78%
EPS 3Y-2.37%
EPS 5Y-1.95%
EPS Q2Q%6.98%
EPS Next Y4.56%
EPS Next 2Y3.47%
EPS Next 3Y4.31%
EPS Next 5Y2.7%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y-3.41%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.63%
Revenue Next Year-3.35%
Revenue Next 2Y-1.39%
Revenue Next 3Y-0.38%
Revenue Next 5Y0.68%
EBIT growth 1Y-7.58%
EBIT growth 3Y-6.62%
EBIT growth 5Y-3.35%
EBIT Next Year11.56%
EBIT Next 3Y5.75%
EBIT Next 5Y3.96%
FCF growth 1Y-44.72%
FCF growth 3Y-5.26%
FCF growth 5Y1.21%
OCF growth 1Y-39.12%
OCF growth 3Y-3.72%
OCF growth 5Y-0.95%